Summary
- June 1st could see the start of a strike if no deal is reached between Norwegian Air pilots and the airline.
- The strike could impact 690 Norwegian Air pilots in Norway, threatening the peak summer season for the carrier.
- A past strike in 2015 cost the airline millions, putting pressure on both sides to find a resolution.
A group of pilots for Norwegian Air are planning to strike on June 1st if wage negotiations fail. The move was noted by the government-appointed mediator today, who said that the dispute could escalate to affect many more pilots working for the airline.
No deal
Norwegian pilots represented by the Norwegian Pilot Union (NPU) have been locked in negotiations with the airline over salary and working hours. In mid-May, the parties failed to reach an agreement, triggering mediation.
The deadline for mediation is May 31st, and if an agreement is not reached in this window, it could lead to a strike. As reported by Reuters, the government-appointed mediator noted that just 17 of the airline’s pilots were ready to strike from June 1st but warned that this could quickly escalate to become more of an issue.
Photo: Norwegian
Should the dispute continue, the strike action could ultimately affect 690 of the airline’s pilots in Norway. That’s a significant proportion of its workforce, given that the airline employs around 1,300 pilots across all countries.
Pilots have flagged concerns about work-life balance and say their wages need to be brought in line with those of other European airlines. Norwegian Air has made several offers, including improved salaries and enhanced time off, but the union has rejected each one, saying that the offers still fall short of expectations.
Photo: Norwegian
Hundreds of Norwegian Air pilots in Denmark and Spain have already firmed up their collective bargaining agreements. But the threat of a strike from its Norwegian colleagues is hanging heavy over Norwegian Air as it heads into the most lucrative season of the calendar.
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Despite a rough few years, Norwegian was able to provide a comfortable, punctual service.
Bad timing for a strike
When negotiations broke down and mediation was called in mid-May, Norwegian assured passengers its operations were not impacted and that services would continue seamlessly. However, two weeks down the line, the parties remain at an impasse and the deadline for reaching an agreement is looming.
Should the pilots decide to strike, the timing couldn’t be worse for Norwegian. The airline is getting ready to head into the peak summer season, traditionally the busiest time for air carriers, and has launched a rich tapestry of routes for its passengers this year.
New point-to-point routes between Malaga-Munich, Alicante-Munich, Riga-Corfu, and Riga-Tivat were added to the schedule, as well as 9 new routes from Norway, 17 from Denmark, 9 from Sweden, and two from Finland. In all, the airline had planned to fly 332 routes to 123 destinations this summer.
The group, which also includes regional carrier Widerøe, posted an operating loss of NOK 763 million ($73 million) in the first quarter of the year. Despite flying more passengers than in 2022, the airline struggled with a weak Norwegian krone and the seasonally weak demand of Q1. It had hoped to bolster its fortunes with a busy flying summer.
A painful precedent
Norwegian Air has suffered its fair share of industrial action, most notably in 2015 when Scandinavian pilots launched a strike lasting for 11 long days. Mediation talks had collapsed in late February, triggering around 70 pilots to begin strike action.
Over the following days, more pilots joined the action, leading to the airline releasing a statement to its customers on March 4th warning them of flight disruption. The airline predicted around 35,000 customers would be affected, as all domestic flights in Norway and most in Sweden and Denmark along with those between the Scandinavian capitals were canceled.
Photo: Norwegian
After 11 days of action, the strike finally ended on March 10th when the airline reached an agreement with the union. Altogether, almost 2,000 scheduled flights were canceled. But the action cost the airline dearly, and not just in customer goodwill.
Norwegian calculated the effects of the strike as costing it around NOK 350 million ($45.5 million at the time), including costs relating to canceled flights, loss of bookings and reaccommodation of stranded passengers.
Norwegian will be keen to avoid a similar situation almost a decade later in 2024, particularly as the impact would likely be far greater given the time of year. The carrier also no longer has long-haul flights to rely on to mitigate the loss of short-haul pilots.
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No doubt, negotiations over the next two days will be fierce as both parties try to figure out a solution that works for everyone and doesn’t disrupt passengers’ summer travel plans.